The UK economy ranked second-worst among G7 nations in the three months to September, dealing a setback to Sir Keir Starmer’s goal of making Britain a leader in economic growth.
The UK only outperformed Italy, whose economy stagnated in the third quarter, while the US led the G7 with a growth rate of 0.7%. The UK also lagged behind France (0.4%), Germany (0.2%), and Japan (0.2%), with Canada’s data yet to be released.
The slowdown places the UK’s growth at 1.3% for the first three quarters of the year, trailing the US at 1.9%, but ahead of France (0.8%) and Italy (0.4%). Based on current forecasts, Canada is expected to remain slightly behind the UK.
Simon Pittaway, senior economist at the Resolution Foundation, commented: “After rebounding from recession earlier this year, the UK’s recovery is already losing momentum. The country has slipped behind the US at the top of the G7 growth rankings, with slowing growth, shrinking wage increases, and declining employment.
“The UK has experienced a volatile GDP trend over the past year, but its medium-term performance remains sluggish and stagnant.”
Barret Kupelian, chief economist at PwC, noted: “Looking ahead, the government’s recently announced spending plans are expected to boost short-term economic growth. However, the outlook has become less optimistic since these plans were unveiled, as global trade conditions appear more challenging. If this uncertainty persists, it could become a significant obstacle to growth next year.”
